Will These Two Marijuana Penny Stocks Change Course Before Next Year?
It is a well-known fact that 2019 has not been a great year for the cannabis industry. Many of the biggest pot companies have seen their share price diving to new lows every other month. However, many experts believe that in the long term the sector has a lot to offer.
That being said, there are very few marijuana penny stocks in the sector that can be called winners but that doesn’t mean the trend can’t change before 2020. Here is a look at two pot penny stocks that have shown momentum building this week.
Pot Penny Stock To Watch: MediPharm Labs
The first of the pot penny stocks to watch is MediPharm Labs (LABS) (MEDIF Stock Report). Despite shares being lower than 2019 highs, it is actually up year to date by more than 120%. MediPharm is not a cannabis producer but instead, it is involved in providing extraction services for both cannabis and hemp to licensed producers.
Throughout the course of the year, the company has been successful in tying up extraction agreements with some of the biggest names in the industry. Moreover, the deals it has signed are for durations ranging from 18 to 36 months, which makes its long term future secure.
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In addition to that, the legalization of cannabis derivatives in Canada is going to be another major event for MediPharm. More and more companies look for extraction services in order to make a mark in the new niche. So with sales anticipated to begin early in 2020, there stand to be more opportunities opening up. Can this become one of the best marijuana penny stocks to watch next year?
Pot Penny Stock To Watch: Valens GroWorks
Another one of the pot penny stocks that is noticeably green on a year to date level is Valens GroWorks (VGW Stock Report) (VGWCF Stock Report). Shares are still holding 50% gains above where it was at the start of the year. Valens stock has emerged as one of the best performers in the sector this year believe it or not.
Moreover, the company is on track to raise its capacity to 1 million kilos of cannabis soon. It is banking on the increasing demand of derivatives as are other companies within this niche. It has reached long term agreements with HEXO (HEXO Stock Report) and Tilray (TLRY Stock Report) as well.
The latter was actually an extension of an existing agreement. Like MediPharm, Valens is also going to benefit from the legalization of derivatives in Canada and the fact that both these companies generate profits, also makes them highly attractive propositions for investors.